The process of gastrulation generates the three primary germ layers (ectoderm, endoderm, mesoderm). This is one of the most important steps of development.

The eight-cell stage signals the beginning of compaction, during which the cells of the blastula adhere to each other and prepare for further divisions. The epiblast and hypoblast are generated before gastrulation, but after implantation. Differentiation occurs long after the primary germ layers are formed.

The correct answer is the ectoderm. The ectoderm is responsible for generating nervous tissue and glial cells, among other features.

Ectoderm differntiates into the epidermis, nervous system, eye lens, and hair.

Mesoderm differentiates into muscle, cardiac and skeletal systems, blood, and spleen.

Endoderm differentiates into the lining of internal organs, like the digestive tract and respiratory tract.

The ectoderm is the outer layer of the embryo, which gives rise to the external ectoderm and the neuroectoderm. The neuroectoderm can further be divided into the neural crest and the neural tube. The neural crest migrates from the neural tube early in development. While both external ectoderm and the neural tube form an epithelial layer, the neural crest does not and is actually a highly migratory cell lineage. Furthermore, the neural crest is required for innervation of endodermal organs (forming the enteric nervous system), craniofacial features, innervation of the diaphragm for breathing, and many more critical features. Due to its structural and migratory properties, and its importance in development, the neural crest is often referred to as the "fourth germ layer."

Cardiomyocytes refer to cardiac muscle cells, while hepatocytes are liver cells. Beta cells are found in the pancreas and secrete insulin.

The ectoderm gives rise to the nervous system, epidermis, lens of the eye, and the inner ear. 

The lungs are derived from the endoderm. Most epithelial linings are located toward the superficial regions of the body, and arise from the ectoderm. The linings of the respiratory and digestive tracts, however, are embedded deep within the body and are derived from the endoderm.

The endoderm gives rise to most of the internal organs, including the lining of the digestive tract, the liver and pancreas, and the respiratory system.

Muscles and bones are derived from the mesoderm.

The mesoderm gives rise to muscles, bones, the circulatory system, the gonads, and the kidneys. Think of the mesoderm as the means by which your body gets around on a daily basis: muscles and bones, heart to pump blood, and kidneys to excrete waste.

The respiratory system arises from the endoderm.

The retina of the eye originates as an outpouching of the diencephalon. The diencephalon is one of the five secondary vesicles in the early development of the neural tube, which is derived from the ectodermal germ layer.

The ectoderm gives rise to the epidermis, central nervous system, inner ear, and the lens of the eye.

Somites are small regions of specialized mesoderm, which give rise to the skeletal muscles and bones of the body.

The circulatory system arises from the mesoderm. Other mesoderm structures include the muscles, bones, gonads, and kidneys.

The ectoderm gives rise to the epidermis, nervous system, and lens of the eye. The neural crest originates from ectoderm cells.

The endoderm gives rise to several internal organs, including the liver and pancreas, as well as the linings of the digestive and respiratory tracts.

The neural tube is a structure derived from the ectoderm that is found in chordates. The neural tube is formed by the closing of the neural folds, and runs along the dorsal-ventral axis of the developing embryo. Cells within the neural tube give rise to the neural crest. Additionally, the mature neural tube continues to develop into the central nervous system.

The circulatory system is part of the mesoderm germ layer, and includes development of the heart. We know that three answer choices must also be part of the mesoderm, while one is not (the correct answer). The mesoderm is responsible for generating muscle, blood, and bone tissue, kidneys and gonads, as well as the heart.

This leaves us with lungs, the correct answer, which develop from the endoderm layer.